THE number of households with broadband access to the internet is expected to jump from about 6m to 8.5m by the end of this year, as the service becomes available to 99% of the nation.

Many people are attracted by the speed, which makes broadband perfect for downloading music and using services such as internet banking. Increasing numbers of people are also making phone calls online.

But perhaps the main reason for the switch is that broadband packages are now no dearer than a dial-up internet connection through your telephone line, despite being 10 times faster.

You would have paid about £25 a month for an unlimited basic broadband connection 12 months ago. You can now get the same deal for just £14.99 a month.

Prices have tumbled thanks to technological advances and fierce competition — more than 100 companies are fighting for a share of this burgeoning market.

But the wide range of providers and packages, some of which bundle broadband charges and telephone bills, can be overwhelming. Figures from Uswitch, a comparison website, show 43% of new broadband users simply take up their existing telecoms provider’s plan.

Broadband contracts generally tie you in for 12 months. There are two main types of tariff — unlimited, where you pay a fixed monthly fee, and metered packages with a set usage limit. You may get a faster connection for the same price with the latter.

Pipex has a package with a speed of 250 kilobytes that offers unlimited access for £14.99 a month. However, you could get a faster one-megabyte package from Tiscali Broadband for just £1 extra if you are prepared to accept a two- gigabyte cap on your usage.

But you must be careful not to exceed your limit as many firms charge hefty penalties.The charge for each extra gigabyte — with which providers measure internet usage — is between £1.50 and £2. And some firms will cut off your access or insist you switch to a higher usage plan if you exceed your limit.

Chris Williams of Uswitch said: “People who move to broadband often find that they start using the internet more, so it important not to underestimate how much you will use it.”

Set-up costs are another issue to consider when switching to broadband for the first time. Many providers cover these costs themselves. But some firms with the cheapest online tariffs impose hefty fees. Central Point’s Broadband Starter Pack, for example, costs just £12.99 a month. But you will be charged £99 in set-up fees, bringing the cost over the first year to £215.91.

The right deal will also depend on the level of technical support you need. Some of the more expensive providers have free 24-hour helplines, while others offer a 9am to 5pm service available only through a premium-rate number that can cost up to £1.60 a minute.

Uswitch’s broadband calculator can help you find the best deal. However, it includes details of only about 40% of the providers in the market. Visit uswitch.com for information.